Various types of payment plans for paying off a loan, such as a home mortgage or auto loan are known. When considering the interest on the loan, the total cost of the item purchased with the loan can be far higher than the sales price. In fact, the hidden cost of interest is one of the main reasons for long-term financial debt. Although most consumers may not know the type of interest attached to their loans, and how fixed minimum payments mask the disproportionate interest payments, they do know that longer terms mean lower minimum monthly payments. Unfortunately, relying on the current publicized repayment methods (sorting by balance or interest rate and paying extra money monthly towards either of them) does not maximize the interest-debt reduction capabilities. It is therefore desirable to have an improved system and method for reducing both the debt and the total interest paid.